Westpac’s chief economist Bill Evans:
- Maintains the forecast for $0.9000 by the end of 2014
He cites:
- The large near term move in the euro is already done
- The iron ore price has bottomed out
- The market is currently underpricing the risk of RBA cash rate hikes in 2015
Evans goes on:
- Such contrast in interest rate expectations “has enormous implications for the medium term path of the AUD”
- Westpac is forecasting 2 rate hikes (of 25bps each) in 2015, and then another 4 x 25 hikes in 2016
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Can’t see it myself, but there you go. (And counting my blessings that I don’t have to produce such forecasts. Oh, and respect to those who do.)
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Was gonna post Candy Shop …. but probably NSFW and all that. So, if its your birthday … Happy Birthday!